As one of the largest Cryptocurrencies in the world, Ethereum is helping to pave the way for wider adoption of blockchain technology. If you’d like to be a part of this and mine Ethereum, then we’ve put together this guide to help get you started.
Ethereum is currently mined using ‘proof of work’ algorithms, which process data blocks for entry into the blockchain. These algorithms are completed using the resources provided by hardware owned and operated by miners. The hardware, time and power that is used by the computers to carry out this work is compensated with Ether, the currency used by the Ethereum blockchain.
The amount of profit you’ll stand to make from mining Ethereum will vary depending on several factors, including the difficulty of the mining and the current value of the currency.
Have a look at our top cryptocurrency picks for 2018.
How to mine Ethereum
To start you’re going to need a mining client. Follow the steps below to get one up and running.
We recommend using MinerGate, so find your way to its website and hit the ‘Download & Start Mining‘ button.
Windows will double check and ask you if you’d like to install it, hit ‘Yes’ and the setup will launch.
Follow the steps through, and you’ll reach a screen with a couple of options. Make sure you tick ‘Add MinerGate to the system PATH for current user’, and also ‘Create MinerFate Desktop Icon’.
Hit ‘Next’ and then ‘Install’.
You’ll now need to make an account with MinerGate. It’s very important that you keep a record of these details, as any rewards you have for mining will be linked to this account.
Open up the MinerGate applications through the shortcut on your desktop, and hit ‘Create Account’ at the top right. Enter your e-mail and password, and hit ‘Register’.
You will then be logged into the client, and greeted with the screen below
The Smart Mining aspect of the client will automatically suggest a currency to start mining, based on what the client believes is most profitable at that current moment.
The first thing to do is run a benchmark on your system to see what you can expect to mine. Click the benchmark tab at the top of the screen, and then hi the ‘Start Benchmark’ button.
Once you have your results, you will know what you can expect in terms of a return from your mining.
Go back onto the ‘Miner’ tab at the top of your screen. You can then choose a specific cryptocurrency to mine. There are several to choose from here, but you can select Ether manually from the list and then hit ‘Start Mining’.
The client will then start to load a DAG (Dagger Hashimoto) file which should be roughly 1GB in size. This contains the proof of work algorithms that your computer will need to complete to mine Ethereum.
Ethereum mining by the numbers
You can check the progress of your mining by clicking on the ‘Miner’ tab. This will display several stats which will tell you how much of each currency you have mined to date.
The CPU/GPU Mining sections displayed your current hashrate for both, you can hit the dropdown menu in each section to select the number of CPUs/GPUs you’d like to use for the mining process.
The Shares section relates to the mining pool and details how the work of completing the algorithm is split up between all the machines in the pool.
Lastly, the unconfirmed balance shows the amount of Ether you stand to game after it has been confirmed by MinerGate’s servers.
Learn more about blockchain technology here.